Prop Firm Account Types Explained
Understanding Prop Firm Account Types
Proprietary trading firms offer various account types to suit different trading styles and experience levels. Choosing the right account type is crucial for success with firms like Apex Trader Funding or My Funded Futures. This guide explains the main prop firm account types—evaluation, funded, and scaling accounts—to help you find the best fit for your trading goals.
1. Evaluation Accounts
Evaluation accounts are the starting point for most prop traders. These accounts require traders to pass a challenge to demonstrate their skills before accessing the firm’s capital. Key features include:
- Purpose: Prove your trading ability through profit targets and risk management rules.
- Examples: Firms like TradeDay offer one-step evaluations, while FundedNext Futures may have two-step challenges.
- Cost: Often requires a one-time or recurring evaluation fee, which varies by firm and account size.
- Risk Rules: Includes daily loss limits, maximum drawdowns, and consistency requirements to ensure disciplined trading.
- Account Sizes: Typically range from $10,000 to $250,000, depending on the firm.
Passing an evaluation grants access to a funded account. Our free mentorship program can guide you through evaluation strategies.
2. Funded Accounts
Funded accounts are provided to traders who successfully pass the evaluation phase. These accounts allow traders to use the firm’s capital to trade, sharing profits with the firm. Key features include:
- Purpose: Trade with the firm’s money, keeping a portion of the profits (typically 70/30 to 90/10 splits).
- Examples: Take Profit Trader offers funded accounts with flexible payout schedules, while My Funded Futures provides fast withdrawals.
- Risk Management: Strict rules, such as daily loss limits and trailing drawdowns, protect the firm’s capital.
- Account Sizes: Range from $25,000 to $500,000 or more, depending on the firm and evaluation performance.
- Benefits: Access to high leverage, professional platforms (e.g., NinjaTrader, TradingView), and no personal financial risk.
Funded accounts are ideal for traders seeking to scale without risking personal funds. Join our private Discord server to learn from funded traders.
3. Scaling Accounts
Scaling accounts allow successful traders to increase their account size based on performance. These accounts reward consistent profitability with larger capital allocations. Key features include:
- Purpose: Grow account size as traders meet performance milestones, such as profit targets or consistent returns.
- Examples: Apex Trader Funding offers scaling plans that increase account sizes up to $2 million, while FundedNext Futures provides tiered scaling options.
- Requirements: Typically require maintaining risk rules and achieving specific profit thresholds over time.
- Benefits: Access to larger capital, higher profit potential, and sometimes improved profit splits.
Scaling accounts are perfect for experienced traders aiming to maximize earnings. Our free live training can help you develop a strategy to qualify for scaling.
Choosing the Right Account Type
The best account type depends on your experience, trading style, and goals:
- Beginners: Start with evaluation accounts to test your skills without risking personal capital. Firms like TradeDay offer beginner-friendly challenges.
- Intermediate Traders: Focus on funded accounts to trade larger capital and keep a high percentage of profits.
- Advanced Traders: Aim for scaling accounts to access significant capital and grow your trading career.
Consider factors like account size, evaluation fees, profit splits, and risk rules when choosing. Our mentorship program can help you compare firms and account types.
Tips for Success with Prop Firm Accounts
To thrive with prop firm account types:
- Understand Rules: Study the specific risk and performance requirements for each account type to avoid violations.
- Practice Discipline: Stick to a trading plan to meet evaluation and scaling criteria.
- Leverage Support: Use firm resources and our free mentorship program to refine your strategy.
- Start Small: Begin with smaller account sizes to build confidence before scaling up.
- Join a Community: Connect with other traders on our Discord server to share tips and insights.
Start Your Prop Trading Journey Today
Understanding prop firm account types—evaluation, funded, and scaling—empowers you to choose the right path for your trading career. With the right account, you can access significant capital, advanced tools, and profit-sharing opportunities with firms like Apex Trader Funding or Take Profit Trader.
Ready to find the perfect account type? Compare top prop firms and join our free mentorship program to kickstart your trading success!